Less shrinkage and tearage in scouring and comb-
. 600,000,000 lb.
ing (40%)
. 240,000,000 lb.
Wool available for " tops " 360,000,000 lb.
The estimated shrinkage and tearage of 40 % would have been,
much too low as average Australian merino .gives a shrinkage
of about 50% and a tearage of from 5 to i to 8 to i but for
the endeavour made to save shipping space by shipping in the
scoured state only, and by reason of the large quantities of
washed home-grown wools and low-yielding colonial crossbreds
included. The effect of this is clearly shown (Table 7) in Mr.
Norman Rae's figures published in the Yorkshire Observer of
Friday, Aug. 10 1917. From these figures it is evident -
(a) that the Government by 1917 had fears of being unable to
1 With the exception noted with reference to Russian wools.
io68
WOOL
TABLE 6. Estimates (Feb. 1916) and Figures.
(Output of combs per annum.)
Combs
1,500 combs long wool and crossbred
each combing 600 Ib. per 10 hours
1,500 combs Botany each combing 300
Ib. per 10 hours
Actual 1914
Estd. 1916
Actual 1915
Estimated 1916
Actual (1917)'
Estimated 1916
Actual (1917)'
2,823
3,000
2,956
225,000,000
206,655,428
112,500,000
92,869,516
(Output of worsted spinning spindles per annum.)
Spindles
2 Ib. per week per spindle estimated
Actual 1904
Estd. 1916
Actual 1916
1916 | Actual (1916) l
3,000,000
3,000,000
3.24L7H
300,000,000 Ib. 300,241,712 Ib.
(The 1915 actual was 253,879,664 Ib.)
1 Large quantities of scoured colonial wools were being imported,
out being combed, thus eliminating " less tearage."
Certain worsted wools were also being drawn and spun with-
TABLE 7. Stock Dec. 31.
Schwartze % Type
o/
/o
Greasy Ib.
Clean Ib.
72 N.Z. greasy crossbred.
45 Aust. greasy merino .
85 scoured crossbred
mtg. gsy. cross-
bred
mtg. gsy.
merino .
73 low wools .
60 mohair, etc.
Private British
Government British .
Total ....
70
45
85
72
43
75
80
50,656,000
49,438,000
33,704,000
17,901,000
4,638,000
40,223,000
17,807,000
35-459,000
21,258,000
28,648,000
12,888,000
1,994,000
30,167,000
14,245,000
68-69%
78
78
237,213,000
21,701,000
51,053,000
162,935,000
16,926,000
39,821,000
70-87%
309,967,000
219,682,000
Yield as above .
Leaving out skins, yield at 50 % (instead
of 70-87%)
Increase (wool under-estimated)
Skins, 7,238,000 Ib., not included.
. 219,682,000 Ib. (clean)
154,983,000 Ib. (clean)
64,698,500 Ib. (clean)
keep the Allies' wool industries supplied with wool, and much
under-estimated the yields although they had the Leeds
University suggestion of 40% for yield and tearage before them;
(&) that the industry was feeling the shortage of wool and
was regarding the future with misgivings; (c) that leading
wool men thought it actually expedient to question the Govern-
ment figures, and, if possible, to obtain at once a greater wool
distribution; (d) that as subsequent figures seem to show, the
university figures of 40% average loss between raw wool and
finished top and the other figures supplied were most nearly
correct, and would have served well as a basis to work upon.
All these figures, however, are chiefly useful as illustrating the
difficulties involved not only in estimating the workable supplies
of wool during the war period but in estimating the yields and
in averaging up the quantities of dean wool which the actual
deliveries might be expected to give.
How serious was the problem of supplying wool to the home
trade, and to such of the Allies as could manufacture it, is
shown in Tables 8 and 9. To the quantities shown in these tables
should be added something over 300,000,000 Ib. of remanufac-
tured materials, probably derived as follows (in 1914 figures):
Of the wool manufactured in Great Britain, 500,000,000 Ib.,
about | (166,000,000 Ib.) is retained at home, and about half
this (or 84,000,000 Ib.) is torn up each year; rags imported
amount to 100,000,000 Ib.; so that the total remanufactured
materials (excluding noil) amount to 184,000,000 Ib. But this
is probably an under-statement, as the figures collected by the
Board of Trade during the war period show an average approx-
imating to 200,000,000 Ib. Thus it would appear that the
woollen industry of Great Britain roughly consumes per annum:
200,000,000 Ib. greasy wool l , 200,000,000 Ib. remanufactured
materials, and 60,000,000 Ib. of noil, or a total of 460,000,000 Ib.
These figures reveal (i) the continuous reduction in the
quantity of British wool grown and, excepting during the war
period, manufactured in Britain; (2) an increase in supplies
1 This figure is questionable as large quantities of so-called
clothing wools may be employed for combing purposes.
of colonial and foreign wools, if we take into account the fact
that there is possibly still some of the 1919 period wool to be
accounted for; (3) the increase in the quantity of colonial and
foreign wool manufactured in Britain; (4) the large increase in
the foreign and colonial importation in 1915; (5) the effects of
the German submarine campaign on the 1918 importation, and
the making up of lost ground in 1919; (6) the fact that the aver-
age importation of colonial and foreign wool for the five years
ending 1919 is much below the five years ending 1914. Had
wool gone elsewhere, or had it not been grown? It may be noted
(7) that Turkey mohair (sent to Britain by parcel post during the
first year of the war) would disappear until 1919, the large in-
crease shown on 1919 being no doubt partly Turkey mohair and
partly Cape mohair; and (8) that alpaca, being free, was largely
employed to take the place of merino wool during 1917 and 1918,
the clipping of immature fibre led to the marked increase in
1918 and the consequent reduction in 1919.
TABLE 8. Pre-war Supplies of Raw Materials.
(In millions of Ib.)
Average for five years
finishing
1899
1904
1909
1914
1919
British wool : Grown
Manufac. Britain
Colonial and foreign wool
Imported .
Manufac. Britain
Skin wool
Pulled wool .
Mohair, Alpaca, etc.
137
114
715
376
34
132
28
136
104
607
342
30
145
37
133
94
707
388
35
193
4i
131
95
782
463
35
206
42
1 20
105
724'
647
30
163
21
* This figure is explained in Table 9.
TABLE 9. War Period and Post-war Period Supplies of Raw Materials.
(In millions of Ib.)
For years
1915
1916
1917
1918
1919
Imported
Foreign wool
Colonial wool .
Totals ....
Imported
Mohair ....
Alpaca ....
Camels' hair
87
838
54
564
44
578
17
396
926*
6i8
623'
3-5
5-5
2-7
413'
5-6
7-0
2-3
1 ,042'
29-4
3-8
4-8
' Average for five years = 724 (see Table 8).
These facts and figures, although somewhat prematurely
placed here, may be usefully borne in mind in studying all
phases of the subject.
In April 1916 the Army Contracts Department of the War
Office began to commandeer hosiery yarns on the financial
basis of a fixed margin to cover the processes of manufacture.
A little later restrictions were imposed upon the export of raw
wool possibly owing to rumours of it reaching enemy countries
and certainly because wool supplies for home purposes were
becoming very restricted. By June 1916 the War Office knew
that further control was almost certainly inevitable, and circu-
lated compulsory requests for particulars of stocks of wool, tops
and yarn, which requests, of course, were very disquieting to the
trade. Later in the same month, so serious was the position
judged to be that the War Office prohibited the opening of the
British wool fair of Kettering, and, eventually, after some debate,
WOOL
1069
purchased the whole of the British clip at 33% above July 1914
prices. The British clips of 1917 and 1918 were also bought.
Anxiety with reference to the possibility of supplying the army
with the wool goods it really needed continually increased. In
April 1917 the open market for wool was closed and the sales by
auction abolished. In May, in anticipation of the lack of wool
to keep the factories going and of labour disturbances, an army
council order was issued which resulted in the reduction of work-
ing hours in the factories from 55^ per week to 45 per week,
unless permission was obtained from the director of army con-
tracts to work full time. This order was not withdrawn until
May 18 1918, following the enormous demand for flannel goods.
Following the revolt, already referred to, of Yorkshire manu-
facturers in Aug. 1917, due to War Office restrictions of supplies
and of estimates of future supplies, and following the failure of
the trade itself to supply reliable data, came the formation of a
" Board of Control."
Wool Control. The Board of Control was organized with Sir
Arthur Goldfinch as director of raw material supplies, Col.
F. V. Willey as controller of wool supplies, and Sir Charles
Sykes as director of wool textile production. The department
was housed in the Great Northern Hotel, Bradford, and was
given complete control of both supplies of raw material and
output of finished clothing. The activities of the department
followed briefly the following lines: (i) A reasonably exact
basis of " yields " was ascertained and all wools dealt with on the
" clean wool " basis. (2) Reliable statistics were obtained and
made the basis of the distribution of supplies of raw materials.
(3) A method of " rationing " the margin of wool supplies
(about 20% of the available supplies) available for the civilian
trade was worked out. (4) Difficulties of a minor nature, such
as the supply of oils for oiling wool, soaps for scouring, etc.,
were faced and usually satisfactorily surmounted. (5) A stand-
ard clothing scheme was introduced, the intention of which was,
no doubt, good, and its failure only to be attributed to the fail-
ure to employ the technical skill actually available in the in-
dustry in the designing and displaying of the goods manufac-
tured. Exhibitions were held up and down the country and
attracted much attention, but little demand for the fabrics was
exhibited. Last, but perhaps not least, the department had to
face the problem of relinquishing control on the termination of
the war. Those who know the anxiety caused, years before
the war was over, by the clearly foreseen difficulties of disband-
ing an enormous army, will know something of the anxieties of
the Wool Control Board to close down with credit to itself and
no less to either the wool grower or the wool manufacturer.
Provision for After the War. The Armistice brought with
it the determination of those whose trade had been taken from
them by the Wool Control Board to oust the Board and regain
their own back again. The Board's function, on realizing the
inevitable, was to dissolve (i) with credit to itself, and (2) with
due regard to the interests of the wool growers and wool mer-
chants, of the wool manufacturers, and of the consuming public.
With the huge demand for goods following the Armistice prices
soared up and up, and it was only human that the Board should
tend to retain command to its own financial advantage, and
also to attempt to prevent undue inflation of values to the
detriment of the consuming public. So far as British wools were
concerned the removal of control was so simple that no pre-
liminary action was considered necessary, and the restrictions
were actually removed in time for the wool fairs in 1919.
To meet the difficulty with reference to Australian wools the
Imperial Government had decided to purchase the Australian
dip for one year after the war. To further facilitate matters, a
Wool Council, which included imperial representatives, was
formed by the War Office.
With reference to the interests of the manufacturers and
consumers the Government again asked for advice from the
university of Leeds through one of its representatives. In a
personal interview with the official in question the probable
trend of trade after the war was outlined and the suggestion
given that, in view of the almost certain shortage of immediately
available supplies and the huge demand for fine merino wools,
certain manufacturing restrictions such as spinning only to
fine counts of yarn should be imposed. Unfortunately this
suggestion was not sufficiently acted upon, with the result that
the army's revolt from rough khaki to fine blue serge sent merino
wools soaring up to unthought of heights, all other qualities
following suit. The intention of the Wool Council was un-
doubtedly good, but again the direction of the matter was pri-
marily in the hands of those who knew little or nothing about
the wool industry, who could not even judge who were giving
them sound advice and who were giving them questionable
advice. It may be conceded that to control speculation under
the conditions prevailing from 1918 to 1921 was apparently
impossible. Apparently the only thing to be done was to unload
stocks as rapidly as possible although one authority did sug-
gest that the way to reduce prices was to keep large stocks of
wool and not to sell.
During this period there was much unrest in the labour
world and a great deal of talk about " profiteering." As an
indirect result of this the Whitley Act was passed by Parliament,
and note should here be made of the endeavours made by the
British woollen and worsted industries to take advantage of
this Act and form " Industrial Councils " composed of employers
and employees, also of the formation of the " National Wool
Textile Industrial Council," the final draft-constitution of
which prepared by Mr. Ernest Marsh (chairman) and Mr.
G. H. Wood (secretary) as adopted on Dec. 10 1918, was as
follows (Yorkshire Observer, Nov. 27 1918):
" The title selected is the National Wool (and Allied) Textile
Industrial Council, and its objects are defined as follows:
To promote the development of the industry and to secure that
wages, methods of production, and conditions of employment shall
be systematically reviewed and decisions agreed upon which shall
have as their object the improvement of the relations between em-
ployers and employees.
In furtherance of these objects the Council shall:
(a) Consider wages, hours, and working conditions in the indus-
try as a whole, and the fixing of standard rates of wages for similar
occupations in the industry. It shall also consider the employment
of scientific and agreed methods of fixing wages, and of adjusting
wages to new conditions, and the securing to the employees of a
share in any increased prosperity of the industry;
(i) Consider the best means of securing the highest efficiency
of the industry, including any improvement in machinery, inven-
tion, or method by which the prosperity of the industry is to be
increased; secure that such invention or improvement in method
shall give to each party a fair distribution of the benefits derived
from the increased efficiency; utilize to the fullest extent the prac-
tical knowledge and experience of the workpeople, and secure that
such knowledge may receive consideration ;
(c) Consider the existing machinery for the settlement of differ-
ences between different parts and sections in the industry, and the
establishment of regular methods of negotiation on anticipated
issues between employers and employees, and upon differences
which may be reported with a view to the prevention of differ-
ences and their equitable adjustment;
(d) Consider the supervision of the entry into and training of
employees for the industry, and cooperation with the educational
authorities in arranging educational facilities for the industry in
all its branches;
(e) Make comparative studies of the workings and methods
of the industry in this and other countries, and when desirable pub-
lish reports;
(/) Secure to the workman a greater share in and responsibil-
ity for the determination and observance of the conditions under
which he works, in so far as it relates to his material comfort and
well-being; make efforts for the decasualisation and permanent
security of employment, having regard to the conditions surround-
ing changes of occupation between one employer and another;
consider means toward the improvement of conditions with a view
to removing the danger to health in the industry, and toward pro-
viding special treatment where necessary for employees in the
industry;
(g) Make reports to Government departments and local author-
ities of the needs and opinions of the industry; consider any ques-
tions bearing on such matters which may be referred to the Indus-
trial Council by the Government or by a Government depart-
ment; consider jointly all proposed legislation affecting the indus-
try and take joint action where "such legislation is likely to inter-
fere with its prosperity;
(h) Consider the best means of insuring the observance of the
decisions of the Council and of agreements made between organiza-
tions of employers and employees;
1070
WOOL
(*') Consider means whereby the employers and employees
shall be brought within their respective associations."
This Council steadily extended its activities, and may ulti-
mately be the deciding factor in helping Great Britain to main-
tain and possibly to extend her manufacturing position.
Another [indirect result of the war was the development of
industrial and scientific research. The university of Leeds (so
far as the wool industry was concerned) here took the lead, and,
in conjunction with the West Riding County Council and with
the help of many prominent manufacturers in the various manu-
facturing districts, raised approximately 5,000 per annum for a
period of five years. With the development of the Government
Department of Scientific and Industrial Research, however,
came the question of overlapping, and the university, while
naturally retaining its own research status, not only gave way
to the new department but strenuously helped in the develop-
ment of " The Research Association for the Woollen and Worsted
Industries " now housed in Leeds. This Research Department is
designed to cover the requirements of Great Britain and Ireland.
III. AFTER THE WAR (1918 to 1921)
Withdrawal of Control from British Wools. Under political
pressure the Government freed the wool fairs of 1919 from State
control. But a curious tendency now made itself felt. Owing
to the limitation of supplies of colonial crossbreds and other
1915 1916 1917
1918
1919
1920
1921 PRICE
1 PER LB
I IN PENCE
CHART t
Values of British Wools and Tops (1911 to 1921)-
crossbred wools, woollen manufacturers had been constrained
to use British Down wools and Down crosses. These were dis-
covered to possess just the characteristics sought for in certain
woollen goods. They were also the wools sought for by the
hosiery manufacturer; and as hosiery now took a wonderful
development the Down wools went soaring away in price, at
last almost rivalling colonial merinos. When the slump came,
Down wools stood out against it even longer than merinos, and
it seemed probable that when trade should revive Down wools
would again come into their own. In view of the great future
before Down wools it was regrettable that more British farmers
did not follow the suggestion to grow Down crosses, as stren-
uously advocated by qualified representatives of the universi-
ties of Edinburgh and Leeds.
The changes in values of British wools and tops are shown for
the decade in Chart i.
Of course the high values shown in this chart are fictitious in
more senses than one, but it would seem that if the 1921
prices of these wools had been brought to the 1914 basis they
must be so cheap that demand for goods manufactured from
them would have been immediate. Probably the large stocks
of manufactured goods still held in 1921 by the middleman
kept the prices of these goods at an artificial height and thus
lamentably interfered with trade.
Withdrawal of Control from Colonial Wools. The Wool
Council of the War Office on the cessation of hostilities found
itself in great difficulties with reference to colonial wools. Just
as on the outbreak of war no one knew what would happen, so
in this case it was impossible to foresee whether the enhanced
values of the war period would be maintained or prices rapidly
fall. If prices had rapidly fallen it is possible that the wool
grower would have held the Wool Council to its bargain, and
1916 1917 1918 1919 1920
1921 PRICE
PER LB.
IN PENCE
168
CHART 2
Values of Colonial Wools and Tops.
no one could well have found fault with their attitude. But pric
rapidly rose, and so it came about that the colonial wool growe
felt aggrieved that he was not going to profit by the enhance
wool values like the home wool grower. Thus it came abou
that the Imperial War Council agreed to share the very sub
stantial prospective profits with the colonial wool grower. Un
fortunately much of the 1919 wool had not been brought und
the hammer before the slump started (May 1920), but it
stated that, after the British Treasury had been reimbursed :
the expenditure it had incurred, there was at the end of 1920
clear profit of 14,000,000, half of which belonged to the growe
bringing their total receipts up to 180,896,059. In additio
to this there remained unsold (Dec. 1920) 1,800,000 bales, hal.
of which belonged to the growers.
WOOL
1071
The change in the values of colonial wools and tops during the
decade are shown in Chart 2.
Up to May 1920 the endeavour of the Wool Council was
rather to maintain than to inflate values, and much fault was
found with the Council for not making greater progress with
the disposal of the wool to hand the manufacturers were
crying out for it. To meet this demand the Antwerp sales were
reopened on Oct. 25 1919 and extensive sales in the United
States of America were also promoted, one of the first being
held in Philadelphia in Sept. 1919. Apparently the fall in the
prices of wool was almost coincident with the release of ships
for transport. Unfortunately few realized the large stocks of
wool on hand or rather they estimated their consumption at
the 1919 rate and consequently minimized their stocks. Thus
it came about that, following a period when every conceivable
bale of wool was called for and (from the sellers' point of view)
ought to have been placed on the market, came a period when
with bated breath one heard the word " unloading," and all
too soon new wool and old wool were on the market together.
1919
1920
1921
20
70 MERINO
TOP
568 CROSS BRED
10 TOP
40 PREPARED
TOP
CHART 3
Wool Values Adjusted to 1914 Values.
Adjustment of Sale of Old and New Wool In the early days
: of 1920 those starting new works in the colonies, India and else-
where, were asking can we obtain sufficient wool to run our
factories? And there was every inducement to wool growers -
particularly growers of the finer sorts to extend operations.
Toward the end of 1920 almost all factory building the world over
was suspended or carried on very leisurely; and with the fall in
wool values many sheep breeders were already looking on wool
as an almost valueless by-product. .Probably both extremes
were wrong. Table 10 gives a fair idea of the world's wool
stocks about the end of 1920 or early in 1921.
TABLE 10. World's Wool Stocks (Approximate) 1
Wool in England (held by the B.A.W.R.A.) . . 1,600,000 bales
" Australia " " " . . 800,000 bales
Cape wool (held by B.A.W.R.A.) .... 100,000 bales
U.S.A. surplus stock (Oct. i 1920) 2 .... 1,000,000 bales
S. American wool 5,ooo bales
Total 3,505,000 bales
1 No doubt small stocks were held elsewhere.
2 Two years' stocks said to be accumulated.
Prior to the war the world's yield of wool was about 2,728,-
461,630 lb., and it might be taken that about this amount was
yearly absorbed. It would thus appear that the surplus wool
on hand was equivalent to about 14 or 15 months' normal world's
consumption. 1 Now if there were serious depletion of stocks of
manufactured goods, and if there were likely to be a greater
demand from the better paid workers of the world, and from
countries likely to demand wool goods which previously had not
consumed such goods in great quantities (India for example),
then the stock of wool would appear hardly sufficient to meet the
probable demand. Possibly these brighter conditions might have
been realized, but for over speculation in the wool industry